Six things to do if the base rate goes up (or even if it doesn’t)

Borrowers bracing themselves for a base rate hike can take steps to survive the impending increase.

Price comparison website moneysupermarket.com has come to the rescue with six alternatives to lessen the blow of an interest rate jump.

Stuart Glendinning, managing director at moneysupermarket.com, said: “A base rate rise is inevitable sooner rather than later, but people ought not to panic. Review your financial situation rationally as there are several logical steps that can be taken to alleviate financial distress."

Pay off as many debts as you can, starting with the debts that have the highest interest rates and charges.

Save money by remortgaging, provided you are not subject to an Early Redemption

Penalty (and, as a one off, consolidate expensive unsecured debts).

Alternatively, pay off expensive unsecured debts with a 0 per cent balance transfer credit card and use the 0 per cent period to pay off as much as you can.

Stop seeking further debt if it cannot be paid off during the interest free period.

Cut out unnecessary expenditure.

If you are in financial trouble notify the organisations that you make monthly payments to and seek advice from the Citizens Advice Bureau or National Debtline.